AMCG invests $30m in Chevalier for Moraitis acquisition
Asia Mezzanine Capital Group (AMCG) has invested in $30 million in Chevalier International Holdings, aiding its acquisition of Australia's Moraitis, a fruit and vegetable wholesaler backed by Catalyst Investment Managers. AMCG provided the financing via a five-year senior secured loan facility with equity option shares.
The investment has allowed the Hong Kong conglomerate to lead a consortium of investors in acquiring 70% of Moraitis. Chevaliar has already announced that it will take of a 38.46% stake in the acquisition vehicle for A$33.14 million ($32.4 million).
The deal represents a partial exit for the Moraitis family and previous PE investors Catalyst, which held 51% and 49% of the business, respectively. Catalyst bought its stake from the Moraitis family for around $53 million in 2006.Over the last five years, the company's revenue has more than doubled, reaching A$490 million the year ended June 2012.
Moraitis has been in operation for 55 years and supplies leading Australian supermarket chains such as Woolworths.
"The Chevalier investment took us one year and we were very proactive in helping them negotiate the acquisition and the loan financing," Joseph Ferrigno, founder and managing partner with AMCG told AVCJ. "We were involved as a partner with Chevalier which is the role we like to play."
Chevalier is principally engaged in construction and engineering, insurance and investment, property, hotels, food and beverage and IT. The company has a presence in Hong Kong, mainland China, Macau, Singapore, Thailand, Philippines, Vietnam, Canada, the US and Australia.
The group is said to be increasingly interested the farming and agriculture sector in light of China's rising food and food security needs. It hopes to use the Moraitis acquisition to capitalise on this trend.
Ferrigno added that investment Chevalier was unusual for AMCG, which does not typically invest in public companies. "We are seeing a lot more deals where Chinese companies are looking to make acquisitions outside of China. We are also working with mainland Chinese companies wanting to do acquisitions in Europe and the US," he said.
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